Worldwide automation market set to grow

Thursday March 19, 2009
Written by
BOSTON, Mass. - The worldwide market for production machinery automation, including AC drives, PLCs, motion control products, computer numerical controls and machine safeguarding products, is expected to grow at a compounded annual growth rate of 3.4 percent over the next five years. The market was $18 billion US in 2008, and is forecasted to be over $21.2 billion US by 2013, according to a new ARC Advisory Group study, Production Machinery Automation Worldwide Outlook.
"Increasingly more machinery applications are moving to much higher speeds of operation, as well as providing more capability to reduce changeover time," said Sal Spada, research director with the ARC Advisory Group, and principal author of the study. "Production raw materials are becoming less consistent as recycled materials enter the market. The result is that machine builders need to consider a wider range of operation in the original design to accommodate changes."

Developing economies all over the world are increasing the demand for industrial production machinery at high rates. Feeding this demand has been a surge of regional machine builders in emerging markets. Domestic machine builders with a vertical specialization have an advantage that goes beyond machine performance issues. It is the greater understanding of the technical and cultural needs of the end user customer that are now emerging as competitive advantages to machine builders in these markets. Regional OEMs, including both domestic and foreign transplants, have leveraged their close proximity to the customer to create an understanding of the particular niche their customers operate in and are able to build machines that are more suitable for regional issues. The growth of OEMs in emerging markets has enabled manufacturers who once relied on a comparative labour advantage to produce low valued products and become confident with employing machinery in their facilities that will enable production of higher valued finished goods. Because of this, industrial automation suppliers are also experiencing a tremendous growth in these emerging markets in both unit volume and unit value.

To access the report, visit www.arcweb.com.

Add comment


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.